UBS Maintains a 'Buy' on Home Depot (HD); This is Powerful Stuff
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Price: $78.91 -0.98%
Rating Summary:
7 Buy, 12 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
7 Buy, 12 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Trade HD Now!
UBS maintains a 'Buy' on Home Depot (NYSE: HD) price target of $63.00 (from $58.00).
Analyst, Michael Lasser, said, "HD's results showcased the company’s ability to generate substantial operating leverage as its sales recovered. The company generated 115 bps of expense leverage as SG&A per sq. ft. declined -3.3% YoY. There were some temporary benefits that influenced the leverage but, even factoring out these expenses, management was solid. Importantly, HD now expects that its operating expenses will only grow at 10% the rate of sales growth (on a 52-week basis). We think this type of leverage will continue as the home improvement cycle unfolds."
Lasser said Home Depot is set up well for the second half of 2012 and 2013, especially after HD mentioned some of its best performing areas (geographically) were ones that were hardest hit the past few years (Cali and Florida). This thesis was reaffirmed when HD mentioned that August is tracking in-line with guidance.
For an analyst ratings summary and ratings history on Home Depot click here. For more ratings news on Home Depot click here.
Shares of Home Depot closed at $56.31 yesterday, with a 52 week range of $31.03-$56.47.
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Analyst, Michael Lasser, said, "HD's results showcased the company’s ability to generate substantial operating leverage as its sales recovered. The company generated 115 bps of expense leverage as SG&A per sq. ft. declined -3.3% YoY. There were some temporary benefits that influenced the leverage but, even factoring out these expenses, management was solid. Importantly, HD now expects that its operating expenses will only grow at 10% the rate of sales growth (on a 52-week basis). We think this type of leverage will continue as the home improvement cycle unfolds."
Lasser said Home Depot is set up well for the second half of 2012 and 2013, especially after HD mentioned some of its best performing areas (geographically) were ones that were hardest hit the past few years (Cali and Florida). This thesis was reaffirmed when HD mentioned that August is tracking in-line with guidance.
For an analyst ratings summary and ratings history on Home Depot click here. For more ratings news on Home Depot click here.
Shares of Home Depot closed at $56.31 yesterday, with a 52 week range of $31.03-$56.47.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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